Benchmark indices Nifty and Sensex snapped a two-day losing streak on April 2, rising ahead of an expected announcement from US President Donald Trump on fresh import tariffs, which the White House confirmed will take immediate effect.

D-Street witnessed a sharp sell-off on April 1, with the Sensex plunging 1,400 points, nearly 2 percent, and the Nifty sliding 350 points, or 1.5 percent. Nifty IT and Pharma, most vulnerable to trade shocks, led the decline, followed by financials. Panic spread as India VIX, the market’s fear gauge, spiked 8 percent, nearing the 14 mark, signalling heightened volatility ahead.

At about 9:55 am, the Sensex was up 351.88 points or 0.46 percent at 76,376.39, and the Nifty was up 74.80 points or 0.32 percent at 23,240.50. About 1376 shares advanced, 1627 shares declined, and 116 shares remained unchanged.

"The market's near-term market trajectory hinges on Trump's tariff announcement details. Should Trump unveil milder-than-anticipated tariffs, markets may experience a rebound led by export-oriented sectors, including pharmaceuticals and information technology. Conversely, severe tariff impositions could trigger further market deterioration," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

Market experts suggest that Trump tariffs could help exacerbate inflationary pressure, limiting the US Federal Reserve's ability to moderate interest rates. His latest move—a 25 percent tariff on foreign cars and auto parts—has investors bracing for broader trade restrictions. Gold, the ultimate safe-haven asset, surged past $3,125 per ounce, scaling fresh all-time highs at $3,161 as risk aversion took hold.

The broader market displayed weak cues in the morning, with the Nifty Midcap 100 falling 0.4 percent while the Smallcap 100 dipped 0.55 percent. Despite a 10-14 percent decline this year, analysts caution that stretched valuations could signal further downside.

Sectorally, Nifty PSU Bank, Metal, Oil & Gas, and Pharma were the major laggards, crashing up to 1 percent in morning deals. Pharma stocks continued their slide given their vulnerability to Trump tariffs. On the flipside, Nifty IT, Bank, FMCG, and Consumer Durables rose to 0.8 percent each.

Trent shares gained extended gains for a second session as Goldman Sachs maintained a "Buy" rating with a target price of Rs 8,120, citing a strong positive surprise in Zudio’s store additions in Q4. The brokerage expects accelerated store expansion in FY25 to boost investor confidence in Zudio’s long-term potential. With significant room for store penetration and market share gains in the value segment, Trent stands out with the highest earnings growth potential in Goldman Sachs’ India consumer coverage.

Shares of TVS Motor Company gained over a percent after the company wrapped up the financial year 2024-25 on a high note, delivering its best-ever annual sales of 4.74 million units, a 13 percent jump from the previous year. The momentum continued in March 2025, with total sales rising 17 percent year-on-year to 4,14,687 units.

Waaree Energies and Premier Energies slipped 3 percent after global brokerage firm Bernstein initiated coverage with an 'Underweight' recommendation. Analysts suggest that the stage of the current market cycle, expectations of declining returns, and the stocks' rich valuations are the three main reasons. The brokerage mentioned that a business built on regulatory arbitrage cannot be assigned the same valuation multiple as a structurally sound business.

"The Nifty index has experienced a sharp decline, approaching the 50EMA on the daily chart. This drop follows a recent phase of consolidation, signalling a weakening sentiment. However, in the near term, the 50EMA support could play a crucial role in stabilizing the market. If this level holds, we may see a recovery," Rupak De, Senior Technical Analyst at LKP Securities, said. "That said, a decisive breakdown below 23,115 could trigger a deeper correction. On the upside, resistance is observed at 23,250—a breakout above this level could reignite bullish momentum in the market," he added.

Tata Consumer Products, Maruti Suzuki, Bharti Airtel, Tech Mahindra, and HDFC Bank were the top gainers on the Nifty. Laggards on the index included Bharat Electronics, Jio Financial Services, Nestle India, Coal India, and HUL.